The acquisition is "pricey, but important", said Wells Fargo analyst Tim Evans, as it enables Catalent to beef up previously weak areas of manufacturing active ingredients and final dosage forms of biologic drugs.
Catalent, through the transaction, will get access to Cook Pharmica's 875,000 ft2 development and manufacturing facility in Bloomington.
"We only consider opportunities like this when it clearly benefits the patients we serve, our employees, the community, and both companies", said Cook Group President Pete Yonkman in a statement. "All of those employees will become part of Catalent's growing biologics business and remain under the leadership of Cook Pharmica's president, Tedd Green".
Cook Pharmica employees were not informed of the sale of the company, until it was announced this morning.
Upon completion of the merger, all of Cook's 750 employees, including its executive team, will join one of Catalent's more than 30 sites across five continents.
"The complementary biologics development, biomanufacturing and fill-finish capabilities of Catalent and Cook Pharmica will provide biopharmaceutical firms with a single, integrated partner supporting a wide range of clinical and commercial needs", said John Chiminski, chair and CEO of Catalent.
Cook Pharmica, a unit of medical device maker Cook Group Inc, generated $179 million in revenue for its year ended June 30.
A Cook Group spokesperson says the company is purchasing the old GE plant in Bloomington to expand and modernize its manufacturing. The $6.5 million deal is expected to close by the end of 2017. On Sept. 19, 2017, Catalent announced the agreement to acquire Cook Pharmica, a provider of drug substance and drug product manufacturing and related services to strengthen the company's position as in biologics development and analytical services, manufacturing, and finished product supply, according to a press statement announcing the acquisition.